PROACTIS Holdings PLC Trading Update and Notice of Results (3502R)
February 28 2019 - 2:01AM
UK Regulatory
TIDMPHD
RNS Number : 3502R
PROACTIS Holdings PLC
28 February 2019
PROACTIS Holdings PLC
Trading Update and Notice of Results
Proactis Holdings PLC ("Proactis", the "Group" or the
"Company"), the global spend management and B2B eCommerce solution
provider, announces that the Group expects to report order intake
of GBP5.8m (2018: GBP5.5m) of total contract value ('TCV') for the
6-month period ended 31 January 2019 (the period') and revenue of
approximately GBP27.7m (2018: GBP26.4m). This includes TCV of
GBP1.0m (2018: GBPNil) and revenue of GBP2.8m (2018: GBPNil) from
the Esize Group which was acquired on 6 August 2018. The Board is
pleased with the early stage performance of the Esize Group. The
Group expects to report approximately GBP8.0m (2018: GBP8.5m) of
Adjusted EBITDA(1) for the period and net debt of approximately
GBP40.0m as at 31 January 2019.
During January and February 2019, the Group has experienced a
lower level of retention and a deterioration of the pipeline in the
Group's US and European operations. Accordingly, whilst trading in
the Group's UK operations and the Esize Group are expected to
remain robust, the Board now considers that it is unlikely that the
Group as a whole will deliver significant growth for the remainder
of the current financial year ending 31 July 2019.
Following the departure of former CEO Hamp Wall (announced 10
January 2019), new CEO Tim Sykes has initiated an in-depth review
of the Group's US and European operations in order to ensure that
the Group's resources are focussed on the considerable
opportunities open to it in those territories and the Board looks
forward to sharing the results of this review with shareholders and
expects to provide an update within its interim results, scheduled
for 29 April 2019.
Accelerated Payment Facility ('APF')
The Board is pleased to announce that it has secured a specific
committed facility provided by HSBC UK of GBP20m to support the
delivery Group's APF, a solution that it is presently developing.
The facility is non-fee and non-interest bearing until drawn. The
APF will enable the Group to fund early payments against approved
invoices for suppliers to its buyside customers. The Group
estimates that the annual spend of its buyside customers is more
than GBP250bn and the Group is working with certain buyside
customers to create an early adopter programme.
Appointment of a Chief Financial Officer
Following the appointment of Tim Sykes as Chief Executive
Officer on 10 January 2019, a process for the recruitment of a new
Chief Financial Officer commenced. The Board has identified a
preferred candidate who has agreed to join the Group, subject to
contract, and the Board looks forward to being able to announce the
appointment in the near future.
Appointment of an additional Independent Non-executive
Director
Following the appointment of Sophie Tomkins on 30 October 2018
as Senior Independent Non-Executive Director and Chair of the
Remuneration Committee, the Board reiterated its commitment to
bring additional independence to the Board. A process is now
underway to appoint a further independent non-executive director as
Chair of the Audit Committee and the group looks forward to
announcing an appointment in due course.
Note 1: Before the impact of non-core net expenditure (primarily
related to the Group's acquisition during the year and the
post-acquisition integration programmes), amortisation of customer
related intangible assets and share based payment charges..
Tim Sykes, Chief Executive Officer, commented:
"Whilst the outlook for the next few months is disappointing, I
am confident in our ability to deliver an improved level of
performance in the mid to long-term. Our core markets remain
attractive and our core technologies and team are competitive. I
look forward to completing my review for the Board and focussing
the Group on a growth strategy that should be successful in all of
its territories and returning the Group to the qualities it has
demonstrated historically.
"I am delighted with the renewed rate of progress with the APF
after investing in additional capacity to move it forward. There
remains much work to do before revenues can be expected but the
commitment from HSBC UK is strong validation of the significance of
the opportunity and their support for our business."
The information communicated in this announcement contains
inside information for the purposes of Article. 7 of the Market
Abuse Regulation (EU) No. 596/2014.
For further information, please contact:
Proactis Holdings PLC
Tim Sykes, Chief Executive Officer Via finnCap or
Alan Aubrey, Chairman investorcontact@proactis.com
finnCap Ltd
Stuart Andrews/Carl Holmes/Emily Watts
- Corporate Finance 020 7220 0500
Andrew Burdis/Richard Chambers - ECM
Notes to Editors:
Proactis creates, sells and maintains software and services
which enable organisations to streamline, control and monitor all
indirect expenditure. Its solutions are used in approximately 1,000
buying organisations around the world from the commercial, public
and not-for-profit sectors.
Proactis is head quartered in London and floated on the AIM
market of the London Stock Exchange in June 2006.
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END
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